Photo: Bill Longstaff/Flickr
With a slight uptick in sales and more homes listed in June, Calgary’s housing market is on the road to recovery even as supply continues to outpace demand.
Last month, a total of 2,140 homes sold in the city, up 5.47 per cent from the 2,029 sales in June 2016, according to the latest data from the Calgary Real Estate Board (CREB).
In the detached sector of the market, prices increased modestly and stabilized in June, signalling a balanced market.
“The recovery feels similar to the recovery we felt in 2013,” Corinne Lyall, Owner of Royal LePage Benchmark tells BuzzBuzzNews.
“We’re still below average for number of sales over the last 10 years but still it definitely feels like we’re in recovery mode,” she adds.
There were a total of 1,385 detached home sales in the city last month, an 8 per cent increase from June 2016.
Meanwhile, inventory in the detached sector climbed roughly 10 per cent year-over-year to 3,224 units and months of supply saw a small uptick to 2.33 months compared to 2.29 months in June 2016.
The benchmark price of a detached home also increased slightly last month to $509,400, up 1.70 per cent from the same period last year.
For the first half of this year, CREB says detached home inventories have averaged 16 per cent below last year’s levels but sales are 13 per cent higher, creating more balanced conditions in this segment of the market.
“Any shift where we got a little bit of [an] increase of supply is a good thing because it’s a little bit more balanced and buyers have a little bit more choice,” says Lyall.
City-wide inventory also climbed last month to 6,659 units, an 11 per cent gain from last year’s levels.
Despite the rise in inventory, CREB says second quarter activity is showing improved supply-demand balance and price stability.
The benchmark price in Calgary was $441,500 in June, up only 0.5 per cent over May 2017 and roughly one per cent higher than last year.
Overall months of supply in the city climbed to roughly 3.11 months in June, a 5 per cent increase from 2.96 months in June 2016.
Lyall says June’s gain in months of supply suggests the market is moving towards stability.
“Any time that you’re under three months, there’s less choice for people. When you’re pushing up towards four months of supply, we’re pushing towards a buyer’s market. So, somewhere hovering around three months of supply is a good balanced market,” says Lyall.
Meantime, the apartment sector in Calgary continued to face challenges in June.
Last month, apartment sales fell 8 per cent to 286 sales compared to 310 sales in June 2016.
Apartment inventory increased 21 per cent year-over-year in June to 1,874 units and months of supply soared roughly 32 per cent to 6.55 months from 4.98 months in June 2016.
With an abundance of apartments on the market last month, the benchmark price fell 3.52 per cent to $265,800 compared to $275,500 in the same time last year.
Like the detached sector, the attached segment also saw improved activity in June.
There were a total of 469 attached home sales last month, up 7.32 per cent from 437 sales in June 2016.
Attached home inventory saw a slight increase, with 1,561 units available compared to 1,519 units last year in June.
Meanwhile, months of supply for attached homes fell to 3.33 months, a 4.25 per cent drop from 3.48 months a year ago.
The benchmark price of an attached home is $334,500, up one per cent from last year in June.
Year-to-date, overall residential sales in the city climbed 12 per cent above last year’s levels to 10,322 units. In addition, inventory dropped nine per cent to 5,355 and months of supply fell 19 per cent to 3.11 months compared to the same period last year.